For most of us, usinga credit card is mostly associated with special or larger purchases. I did not even own a credit card until we got engaged and I got one to pay for our hotel, flights and other big purchases. Most people use credit cards for one offitems like holidays, presents, gig tickets and festivals and purchase every day essentials like groceries and takeaways using cash or debit cards. It’seasier for those of us who are particularly budget conscious to keep an eye onwhat’s coming in and (most importantly) going out of our accounts.
However, did you know that many credit cards offer cashback on products that you purchase? This isn’t like getting cashback on your debit card – it’s normally a small percentage of your purchases credited to your account on a regular basis. Obviously it’s not a good idea to put lots more purchases on your credit card – if you don’t pay off the full amount each month, the money you are getting back is going to be instantly wasted on interest payments! That said, for spending that you’ve already got planned, it’s a good way to put your credit card to good use. You need make doubly sure that you pay off your balance every month.
The lovely people at Capital One want to know what YOU think about Cash Back Cards and in return one of you will win a brand new Kindle! How's that for an early Christmas present?
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How many people do you know who don't have a credit card? I will be honest with you-with the exception of an Express Store card (from when I worked there for 2.5 seconds) I didn't have a credit card until I was 27. I got two credit cards to help cover wedding costs like flights, hotels, etc. The big stuff. Credit cards in general scare me. I always pay them on time (unless you count the one time I was late on the Express card but I got out of it because my mail was diverted because of Anthrax) for the fear of late fees. I've paid off one of the two cards and in a perfect world I would get rid of them both.
This isn't a perfect world though and if you use them responsibly credit cards can be good, especially as an expat. If I needed to fly home at the drop of a hat, chances are I'd need to buy a ticket using a credit card. Not to mention that building up credit in a new country is essential when you want to get a mobile phone contract, overdraft or mortgages.
I met up with some other bloggers and the lovely people from Capital One in London last week and we had some really interesting discussions about credit. It's definitely interesting how people view credit based on their age, nationality and circumstances. We all agreed though that the vast majority of people don't really have a grasp of how to use credit responsibly.
Capital One has produced a series of helpful videos called Credit Made Clearer to help dispel the myths, clear up the jargon and help you make the most of your credit card. Learn all about credit, how to prevent ID Theft and credit card fraud. And if you're having problems repaying, you'll find some helpful information and support.
The videos are easy to understand and even give great travel tips, like always get currency before you head to the airport since you'll get a poorer exchange rate there (I always get my money from Cheque Centre; random but they nearly always have the best rates).
Obviously if you need genuine financial advice about specific issues you should speak to a qualified financial advisor but the videos are a great place to start and would be excellent for helping a young adult understand credit.
Transatlantic Blonde was compensated for her time but all opinions are her own.
